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Why Are People Mad at Tesla Now?

It seems like Elon Musk and Tesla are always simultaneously in the midst of controversy and record-breaking success. This week turned out to be no different. Industry experts recognized Tesla for its surprising profits while others criticized the automaker for benefitting from government payouts. Tesla is at the center of a new lawsuit too. Here’s what you may have missed.

People are mad at Musk’s ‘hypocritical’ comments

Whether you like Musk or not, it’s nearly impossible to deny his influence on the auto industry and pop culture. Even amid the COVID-19 pandemic, Musk has still been able to command attention for himself and his business. In a matter of months, Musk has defied stay-at-home government orders and also increased Tesla’s stock price at the same time. He’s also stayed busy with launching prototypes into space

Now, Musk has captured our attention again with his comments about the U.S. government’s handling of the coronavirus. Congress is currently working on the details of an additional stimulus package to help revitalize the economy. Musk took to Twitter to say that another government stimulus check for U.S. citizens would be harmful, not helpful. After his comment, Musk immediately began trending on Twitter.

People found Musk’s comments to be hypocritical. At the time of the Great Recession, Tesla took a $465 million federal loan to manufacture its vehicles in Fremont, California. Musk previously said that the federal loan was the only way Tesla was able to survive as a company. Some people called the billionaire’s comments out of touch and insensitive. 

RELATED: Does the Tesla Model 3 Actually Make It to 300 Miles on 1 Charge?

Then there’s Tesla’s new lawsuit

Tesla has also recently made headlines for its suit against Rivian, one of its newest rivals. Based on the lawsuit, Tesla claims that Rivian has hired a group of its former employees and that some of them shared Tesla’s confidential information. 

“This dispute stems from Rivian’s efforts to misappropriate Tesla’s trade secret, confidential and proprietary information by recruiting Tesla employees and encouraging them to take such information as they leave Tesla.”

Statement from Tesla’s lawsuit

Rivian has a few heavyweight investors, which include Amazon and Cox. According to Tesla’s lawsuit, Rivian has hired 178 of its former employees. Since the filing, Rivian has denied Tesla’s statements.

RELATED: Rivian’s CEO is the Anti-Elon Musk

Tesla’s surprising profits

Elon Musk of Tesla shows off the company's new semi electric truck.
Tesla “Semi” electric Truck unveiling | VERONIQUE DUPONT/AFP via Getty Images

Through all the controversy, Tesla continues to impress with its quarterly earnings. Even industry experts were surprised by the carmaker’s recent gains. Tesla’s second-quarter earnings mark its fourth consecutive quarter of profits, which is impressive given the current state of the electric vehicle market

Because of Tesla’s recent success, Musk says the company is in an excellent position to rollout other plans. These include the highly anticipated Cybertruck pickup. The company also plans to push forward with its Semi-truck for 2021. In the earnings call, Musk said he’s never been more optimistic about Tesla’s future. One new initiative to look forward to is Musk’s intention to make Teslas more affordable.